Cemetery trust used funds for fun

Page Tools

Health Minister Bronwyn Pike yesterday moved to sack the board
of a suburban cemetery trust after an estimated $1.5 million was
misused on items such as cars and entertainment, dodgy contracts,
and illegal cash incentives to private businesses.

Ms Pike yesterday recommended that the seven-member board of the
Cheltenham and Regional Cemeteries Trust be forced to stand down,
after a report by the state's financial watchdog linked it to
several questionable activities, most of which involved the trust's
former chief executive, John Gilbertson.

Victorian Auditor-General Wayne Cameron's report found Mr
Gilbertson used trust funds to buy a $30,000 Mondeo sedan for his
wife, gave contracts worth more than $500,000 to his two sons, and
got the trust to guarantee a $240,000 family loan.

More than $100,000 was also spent on commissions, entertainment,
conferences and overseas travel involving the chief executive and
other staff.

The activities took place over several years, until two trust
members told the Department of Human Services last July.

Ms Pike recommended to the Governor-in-Council that the trust's
board of volunteers be disbanded because she had lost confidence
the trust could operate appropriately.

The trust - which runs the Cheltenham Memorial Park cemetery,
the Cheltenham Pioneer Cemetery, and the Bunurong Memorial Park -
will be placed in administration, and police may be called to
investigate.

"If the board didn't know what was going on, they were inept. If
they did know, they were derelict," Ms Pike said yesterday.

The Auditor-General's report, which was tabled in Parliament
yesterday, found Mr Gilbertson was paid a wage of $180,000 a year -
well in excess of State Government limits. The report also found
:

· The trust spent $40,000 to send nine employees and
partners to a Perth conference.

· Mr Gilbertson had entered into an agreement with a
private business to become an agent of the trust, and to promote
the cemetery in return for 10 per cent commission on grave sales
and memorial packages.

· Thousands of dollars in trust assets were sold to
staff.

Mr Gilbert resigned on December 31 last year. He could not be
contacted last night, but the new chief executive, Ron Smith, who
was appointed in February, said the trust was disappointed with the
Auditor-General's report because the seven members had worked to
improve compliance with State Government requirements.